Crypto market breakout could accelerate as AI trade cools, analyst says
Bitcoin and the wider crypto market rallied as optimism rose over US crypto regulation and as the AI trade showed signs of cooling. Bitcoin briefly moved above $67,000 and Ether approached $1,950, while Coinbase, American Bitcoin, and Cipher Digital posted strong gains. The boost followed comments from Treasury Secretary Scott Bessent that lawmakers were close to passing the CLARITY Act, which would clarify SEC and CFTC oversight of digital assets. Some analysts also argued that capital may rotate from AI-linked equities back into crypto as momentum in chip stocks fades and rate expectations become more favorable. The Philadelphia Semiconductor Index has fallen into a technical bear market after a major run-up, raising concerns about valuations and AI spending overcapacity.
